01/15/2016

The decision by the Department of Justice and the Environmental Protection Agency to file a civil complaint against Volkswagen in federal court, instead of pursuing settlement talks along, likely reflects frustration among regulators. The move also raises the stakes for the German automaker, observers said after DOJ filed its lawsuit on Monday seeking billions for violations of the Clean Air Act.

Environmental violations typically are resolved when the EPA files for court approval of a settlement after reaching a deal with the company, said Julie R. Domike, a former EPA lawyer who now defends such cases at Haynes and Boone, LLP. The companies generally prefer such an outcome, she added.

"It's usually easier to contain negative press and speculation," said Domike. "It's something that's a little more predictable."

Excerpted from MLex. To read the full article, click here (subscription required).

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